Explaining the Energy-Efficiency Paradox. A Vintage Model with Returns to Diversity and Learning-by-Using: A Vintage model with returns to diversity and learning-by-using
This paper studies the adoption and diffusion of energy-saving technologies in a vintage model. An important characteristic of the model is that vintages are modeled as being complementary: there are returns to diversity of using different vintages. We analyse how diffusion patterns and adoption behaviour are affected by complementarity and learning-by-using. It is shown that the stronger the complementarity between different vintages and the stronger the learning-by-using, the longer it takes before firms scrap (seemingly) inferior technologies. We argue that this is a potentially relevant part of the explanation of the energy-efficiency paradox. Furthermore we explore the effects of energy tax policies.
|Keywords||Diffusion, Energy efficiency, Learning, Returns to diversity, Technology adoption, Vintage models|
de Groot, H.L.F., Hofkes, M.W., & Mulder, P.. (2003). Explaining the Energy-Efficiency Paradox. A Vintage Model with Returns to Diversity and Learning-by-Using: A Vintage model with returns to diversity and learning-by-using. OCFEB. Retrieved from http://hdl.handle.net/1765/820